Investments

ABOUT CHARITY INVESTING

We've answered some commonly-asked questions about investing your charity's money.

The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. Past performance is not a guide to future performance. There is no guarantee about the level of capital gains or income that will be generated.

  • We’re a small charity – why should we invest?

    There are several reasons you might want to invest your charity's money:

    • to generate a sustainable, reliable income to support your charity
    • to protect your funds against the impact of inflation
    • to manage your longer term reserves in accordance with Charity Commission guidance (see Charity Commission Guidance Note CC14)

    Discover the other reasons for investing.

  • What are investment funds?

    A way to pool your money with others and invest in a wider range of investments than you could easily achieve alone. The Fund is managed on your behalf by a Fund Manager. Types of investment fund include CIFs, Unit Trusts, OEICs, Investment Trusts and ETFs. Different funds will invest in different types and mixtures of assets.

    What do these terms mean?

    Read our guide to getting started with investing.

  • What should we invest in?

    We can't make those decisions for you, but we've put together a list of factors you may want to consider. If you need guidance, talk to an independent financial adviser before investing. When speaking to an adviser, make sure they have experience in advising charities – and ask for references.

    Read our guide to getting started with investing.

  • What is an investment policy?

    If your charity has investments, you need a written investment policy that sets out your charity's goals and investment objectives - along with a clear strategy for achieving them.

    Find out how to write a policy that works for you.

  • Someone has gifted shares to us – what can we do with them?

    Share gifting can be a significant source of extra income for your charity. And for donors, it's one of the most tax-efficient ways to give. If you receive a share gift, you can either:

    • transfer the shares or funds straight into the CAF Investment Account or
    • do an exchange of letters which would allow the donor to sell the shares or fund on your behalf and pay you the proceeds
  • Should we speak to an independent financial adviser?

    Different investments suit different investors; an independent financial adviser can assess your individual circumstances, give you an overview of your options, recommend the best route and provide ongoing support. To find one in your area, visit www.vouchedfor.co.uk.

  • What are charity-specific funds and CIFs?

    These are a range of funds designed specifically for charities. You’ll be investing through Fund Managers who understand the market and the needs of charities.

    One type of charity-specific fund is the Common Investment Fund (CIF). These are a type of pooled investment specifically set up for UK-based charities. As charities themselves, CIFs allow charities to invest together alongside other organisations that share similar risk profiles and income needs.

    What are charity-specific funds?

  • What is ethical investment?

    Ethical investing involves holding investments with the potential to maximise returns and protect a charity's core values at the same time.

    Find out about ethical investment, and whether it’s the right choice for your charity.

  • How do I calculate our risk appetite?

    Every investment carries risks, even a simple cash deposit, but it's important to understand and manage them. You need to think about everything from how comfortable you are that the total value of your charity's assets might fluctuate to how easily you need to access your money.

    Our article on balancing risk and returns includes some things to think about when calculating your appetite for risk.

CONTACT US

If you'd like us to contact you about this feedback please supply an email address or phone number.
 

 

OUR TEAM

Our expert team is here to help with any questions you have about investing for your charity.

Phone
03000 123 444
(Monday to Friday, 9am-5pm, except bank holidays)
CAF Financial Solutions Limited (CFSL) is authorised and regulated by the Financial Conduct Authority FRN 189450. Registered office is 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4TA. CFSL is a subsidiary of Charities Aid Foundation (registered charity number 268369).

Full legal information

Full regulatory information

Charities Aid Foundation © 2018 | Registered Charity Number 268369
25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4TA Telephone: 03000 123 000
10 St. Bride Street, London EC4A 4AD Telephone: 03000 123 000

Anti-Slavery and Human Trafficking Statement